AT&T (T) Stock Rises as iPhone Deals and Bundled Plans Boost Subscriber Growth

TLDR

• AT&T added 405,000 monthly bill paying wireless subscribers in Q3, beating estimates of 334,100
• Equipment revenue grew 6.1% driven by stronger iPhone 17 sales and promotions
• The company recently announced a $23 billion deal to acquire wireless spectrum licenses from EchoStar
• Q3 earnings per share of $0.54 matched analyst estimates, but revenue of $30.7 billion missed expectations of $30.87 billion
• More than 41% of fiber broadband customers have also opted for AT&T mobile plans through bundled offerings

AT&T posted third quarter results that showed strength in subscriber growth while falling short on overall revenue. The telecom company added 405,000 monthly bill paying wireless subscribers during the quarter.

This beat analyst expectations of 334,100 additions. The strong subscriber numbers pushed AT&T shares up 2% in premarket trading.

AT&T Inc., T

The third quarter is typically a key period for wireless carriers. Competition heats up around Apple’s annual iPhone launch in September.

AT&T rolled out promotions for the iPhone 17 series to attract new customers. The deals also aimed to get existing users to upgrade to more expensive plans.

Equipment revenue climbed 6.1% in the quarter. Higher phone sales drove the increase.

Operating costs in the mobility unit rose 3.8%. The company spent more on selling phones and marketing.

Bundling Strategy Shows Results

AT&T’s approach of packaging wireless and fiber broadband services together appears to be working. Customers get a discount when they bundle multiple services.

This strategy has helped reduce customer exits. More than 41% of fiber broadband households now also have AT&T mobile plans.

The company earned 54 cents per share on an adjusted basis. This matched analyst estimates according to LSEG data.

Total revenue for the third quarter reached $30.7 billion. This fell short of the $30.87 billion consensus estimate.

EchoStar Deal and Business Challenges

AT&T recently announced a major acquisition. The company will purchase wireless spectrum licenses from EchoStar for $23 billion.

This deal will strengthen AT&T’s network capabilities. The additional spectrum provides more capacity for wireless services.

The business wireline unit faced headwinds during the quarter. Revenue from this segment dropped 7.8%.

Legacy voice and data services continued their decline. These older products are becoming less relevant as businesses move to newer technologies.

AT&T provided guidance for full year 2025. The company expects earnings per share between $1.97 and $2.07.

Analyst consensus sits at $2.06 for the full year. In the past 90 days, AT&T received five positive EPS revisions and eight negative revisions.

The stock closed at $26.05 before the earnings announcement. AT&T shares are up 15.83% over the last 12 months but down 6.96% in the last three months.

The post AT&T (T) Stock Rises as iPhone Deals and Bundled Plans Boost Subscriber Growth appeared first on Blockonomi.